Finance Fo Managers

3324 Words Mar 13th, 2014 14 Pages
An Assignment
On
Finance for Managers

Introduction:
Unique horizon Ltd. is a recently formed in 2002 situated at London, a limited company which is facing increasing growth. They began their business as a family business so their level of financial accountability is low. But now the management needs a financial accountant in order to ensure the accountability and proper management of the firm. However, before that the management needs to know specifically the roles and responsibility of proper financial information. They also need to know about budgeted plans and methods for appraisal of a business opportunity.
We have prepared this report basing on the information provided in the case of Unique horizon Ltd. which complies with the
…show more content…
Also, the company should continue its activities according to the rules and requirements of GAAP (General Accepted Accounting Principles).

1.5 Usefulness of financial statements to stakeholders:
A financial statement is a legitimate record of the financial activities of a business, person, or other entity. On the other hand, a person, group or organization that has interest or concern in an organization is known as its stakeholder. Stakeholders are one kind of owner for an organization.
As a result these people want to know about the organization in details in which they are going to invest. In this regards financial statement or financial records are useful instruments for providing those information to the stakeholders. Usefulness of financial statements for stakeholders is discussed below: * A stakeholder is interested in the equity of the firm. The ultimate objective of a firm used to be maximizing profits. But now a days, goals have widened because of the changing environment in which the firm operates and includes earnings per share, employment numbers, management satisfaction, environmental protection and many other factors that have an effect on the equity of the business. For this reason, the stakeholders are interested in the financial information of the organization. * The firm's performance can be assessed through an income statement, balance sheet and cash flow statement.
Open Document